We normally book flights only with Virgin Atlantic. If I book a flydrive with Virgin Holidays and tell them that I don't want to pick up the car.....will the price be reduced at all?

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I think if you book online and don’t take the car the price is reduce by a very small amount.
Might be worth ringing them and see if they can’t get you a better price.
We’ve booked via Virgin holidays in the past and not taken the car.

The amount you pay for the car is very small, they make their money up on the insurances. I can't help with whether they will reduce the amount though. In the past when I booked with VH, we just didn't take the car.